Altcoins buy signal since March after taking it ‘on the chin’
Altcoins with a market capitalization of less than $10 billion may be poised to offer investors “some opportunity” to trade after Bitcoin hits new highs in 2024.
“Small-cap crypto assets have been taking it on the chin since March this year,” Jamie Coates, chief crypto analyst at Realvision, said in a June 13 post.
Bitcoin (BTC) hit a high of $73,679 on March 13 — but fell 6% to $67,126 last week, according to Cointelegraph Markets Pro.
“If this is a normal mid-cycle correction that we're going through, which I believe is likely to happen, then expect some opportunities in the mid-caps and small-caps after the market corrects,” Coates added.
Crypto tracker data from Bitformance shows that over the past three months, the top 200 equal-weighted index — which assigns weight to cryptocurrencies equally regardless of their market value — has fallen more than 30% in terms of market capitalization.
The decline indicates that smaller cryptocurrencies have underperformed relative to the larger cryptocurrencies that dominate the market cap index.
Meanwhile, Coutts said Bitcoin and Ether (ETH) were down 11 percent and 5 percent over the same three-month period.
Metaverse-linked tokens recorded the lowest returns over the past three months, with a negative 44.13% return, he said.
In the sub-$1 billion market cap category, Metaverse tokens The Sandbox (SAND) and Decentraland (MANA) both fell more than 15% last week, according to CoinGecko.
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It comes as institutional interest grows beyond Bitcoin and Ether.
On June 6, Franklin Templeton said it is exploring a new crypto fund to give institutional investors exposure to altcoins.
The asset manager hasn't said which altcoins will comprise the fund's basket, but it recently paid tribute to the Solana network.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
